BBC Cuts Will Rock UK Economy

Cuts proposed to the BBC are set to cost the UK economy between ₤1.1bn and ₤1.7bn a year at 2011 prices.
This is according to recent research carried out by the National Union of Journalists (NUJ). The union has said the cuts, which will result in the loss of 2,000 jobs, will have an extremely negative impact on the UK’s creative industries sector.
The cuts follow an agreement negotiated between the BBC and the government to freeze the license fee at ₤145.50 for six years.
Carried out by Howard Reed of Landman Economics the analysis revealed that the plans titled Delivering Quality First (DQF) would lead to a reduction of UK economic output.
Meanwhile Mr. Reed’s research suggests that there is a strong case for re-opening the license fee deal- he believes there is an alternative to DQF.
It is understood that those polled are willing to pay a higher license fee and this could be a solution to the BBC cuts. It is suggested that the license fee should rise with inflation for the next six years.
The research also highlighted key fears of what could happen to the BBC if the cuts proposed to them are fully implemented. Mr. Reed claimed that the "harshness" of the agreement will mean that the broadcaster will not be able to actively uptake new technologies nor will it be able to train staff in new industry advances-leading to a skill shortage.
Meanwhile it is also feared that with cuts in place the BBC will not be able to maintain the same diversity of programming.
Mr. Reed concluded that implementing the proposed cuts at this time, economically, was a "wrongheaded and dangerous" strategy.
(LB)